AARC AARC - Accredited Automotive Recycler Vehicle Acquisition & Title Processing Questions and Answers 2

Question 1

What is a 'junk title' (also called a 'certificate of destruction') and what restriction does it place on a vehicle?

Accepted Answer

A title indicating the vehicle is designated for parts or scrap only and can never be retitled for road use

Answer

A title for vehicles with minor damage that can be repaired

Answer

A title issued for off-road recreational vehicles

Answer

A temporary title valid for 30 days

Question 2

When purchasing a vehicle at a salvage auction, an AARC-certified recycler should review the vehicle history report for which critical red flags?

Accepted Answer

Odometer rollback, flood damage, title washing, and prior salvage brands

Answer

Only the vehicle color and trim level

Answer

The original MSRP and dealer invoice price

Answer

The vehicle's warranty expiration date

Question 3

What is 'title washing' and why is it a concern for AARC-certified recyclers?

Accepted Answer

The illegal practice of moving a salvage-branded title through states to obtain a clean title, concealing the vehicle's damage history

Answer

The process of legally clearing a lien from a title

Answer

Cleaning the physical title document before transferring it

Answer

A NMVTIS audit procedure

Question 4

Before acquiring a vehicle, an AARC-certified recycler should assess 'parts yield' — what does this calculation involve?

Accepted Answer

Estimating the total resale value of recoverable parts minus acquisition, dismantling, and disposal costs

Answer

Counting the number of seats in the vehicle

Answer

Measuring the vehicle's wheelbase

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Calculating the vehicle's original fuel efficiency

Question 5

Which federal law requires auto recyclers who acquire junk and salvage vehicles to report them to NMVTIS?

Accepted Answer

The Anti-Car Theft Act, as implemented through NMVTIS regulations (49 CFR Part 580 and DOJ regulations)

Answer

The Clean Air Act

Answer

The Occupational Safety and Health Act

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The Resource Conservation and Recovery Act (RCRA)

Question 6

What is the purpose of a 'lien check' when an AARC-certified recycler acquires a vehicle?

Accepted Answer

To verify no outstanding loans or financial claims exist against the vehicle that could complicate title transfer

Answer

To assess the vehicle's fuel system integrity

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To check if the vehicle has been recalled

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To confirm the vehicle's emissions test status